Higher education bonds

Proposed legislation that would allow the State University of New York and City University of New York to set their own tuition rates would have positive credit effects, Moody's Investors Service said last week in a special comment.

The Dormitory Authority of the State of New York gave final and preliminary approval to six bond transactions totaling more than $245 million at its monthly board meeting Wednesday.

University of Puerto Rico officials and students reached an agreement this week that will end a two-month strike that shut down campuses and will allow the university to complete the school semester.

Moody’s Investors Service has revised its outlook to negative from stable on Hamline University’s Baa1 rating ahead of its $15 million refunding bond issue this week.

DALLAS — The University of Texas System Board of Regents plans to price $520 million of Build America Bonds today, its largest single issue of the taxable debt and second-largest deal overall in at least a decade.

CHICAGO — The University of Cincinnati Thursday will price $128 million of debt that includes a mix of new-money and refunding tax-exempt bonds, taxable Build America Bonds, and notes. Roughly half of the long-term borrowing is earmarked for the renovation of the university’s Medical Science Building.

The Internal Revenue Service has closed an audit of $119.2 million of student loan bonds issued by the Massachusetts Educational Financing Authority with no change to the tax-exempt status of the debt.

Trustees of Maricopa County Community College District last week narrowly defeated a proposed 2% increase in the district’s property tax rate.

The New Jersey Educational Facilities Authority is seeking requests for qualifications to provide it with post-issuance analysis for tax-compliance issues.

BRADENTON, Fla. — In its first municipal bond deal in two years, the Kentucky Higher Education Student Loan Corp. today will price $225 million of revenue bonds to take out a portion of its auction-rate securities.

CHICAGO — Illinois’ state universities should have sufficient liquidity to meet their fiscal obligations, at least through November, under a newly approved power to borrow against late state payments and an infusion of tuition revenue expected in late August, Moody’s Investors Service reported in its latest credit outlook.

Moody’s Investors Service last week raised Missouri State University’s auxiliary system revenue bonds one notch to A1 due to the completion of a multipurpose arena that has generated additional revenue to support debt service.

CHICAGO — Gov. Pat Quinn yesterday signed legislation that allows Illinois’ nine public universities to issue short-term debt in anticipation of state aid to help the schools manage through the state’s chronic payment delays.

Moody’s Investors Service has revised its outlook to stable from negative on the University of Iowa Hospitals & Clinics Aa2 rating due to the system’s improved operating performance.

The University of Puerto Rico is seeking more revenue from its student body to help close an estimated $166 million deficit for the upcoming school year and support capital projects.

As families struggle in the aftermath of the global financial crisis and recession, affordability has become a key concern when analyzing private higher education credits, according to a report from National Public Finance Guarantee Corp.

WASHINGTON — The North Carolina Senate yesterday passed a $451 million bond package for its state university and community college systems as some legislators emphasized the importance of education investment even in the face of a large budget deficit.

An ongoing student strike at the University of Puerto Rico has placed the school semester on hold, but the standoff does not affect its ability to repay its $569 million of outstanding bonds, according to a university official.

The Dormitory Authority of the State of New York’s upcoming $1.3 billion personal-income tax bond deal will be the state’s largest ever municipal issue with a minority firm serving as book-runner, DASNY announced yesterday.

Kent State University’s board last week approved a five-year, $250 million capital plan to finance various improvements starting next year through 2016. Officials also said they would ask the state for $65 million in financing.